Jun 10, 2014

May 2014 Mortgage Interest Rates

- originally posted May 1, 2014 -

Mortgage interest rates have fallen about a half percent from last month. The roller coaster continues. These ups and downs are pretty typical so far this year.

For those looking for lower rates reminiscent of last year - that probably won't happen anytime soon. The economic data that drives lower rates just isn't there. The biggest looming concern right now is inflation. Inflation is bad for interest rates, and if it rears its ugly head, we'll see more pressure on mortgage rates to rise.

One of the tools used by the Fed to help control inflation, is to raise rates. Its sort of a balancing act, and something the Fed hasn't had to use much in recent years. The Fed's primary concern has been growth, not inflation. There will be a lot of economic data released over the next few months that'll clue-us-in on whether this is a developing concern. I'll keep an eye on it.

Heading into the month of May, rates are looking pretty good. Everything could change very quickly though, so don't gamble - lock those rates!

Stay tuned for more updates.  Till Next Month,

Michael Dagner

Michael Dagner is a real estate professional in Denver, Colorado.